Mighty Safe Fire Alarm is currently buying 57,000 motherboards
from MotherBoard, Inc. at a price of $66 per board. Mighty Safe is
considering making its own boards. The costs to make the board are
as follows: direct materials, $31 per unit; direct labor, $11 per
unit; and variable factory overhead, $15 per unit. Fixed costs for
the plant would increase by $80,000. Which option should be
selected and why?
a.buy, $433,200 more in profits
b.make, $513,000 increase in profits
c.buy,...